Correlation Analysis Between Bridgewater Bancshares and Esquire Financial

Analyzing existing cross correlation between Bridgewater Bancshares and Esquire Financial Holdings. You can compare the effects of market volatilities on Bridgewater Bancshares and Esquire Financial and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Bridgewater Bancshares with a short position of Esquire Financial. See also your portfolio center. Please also check ongoing floating volatility patterns of Bridgewater Bancshares and Esquire Financial.
Horizon     30 Days    Login   to change
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Comparative Performance

Bridgewater Bancshares  
88

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Bridgewater Bancshares are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days. Despite somewhat strong basic indicators, Bridgewater Bancshares is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors.
Esquire Financial  
55

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Esquire Financial Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days. Inspite very weak forward-looking indicators, Esquire Financial may actually be approaching a critical reversion point that can send shares even higher in February 2020.

Bridgewater Bancshares and Esquire Financial Volatility Contrast

 Predicted Return Density 
    
  Returns 

Bridgewater Bancshares Inc  vs.  Esquire Financial Holdings Inc

 Performance (%) 
    
  Timeline 

Pair Volatility

Considering 30-days investment horizon, Bridgewater Bancshares is expected to generate 1.4 times less return on investment than Esquire Financial. But when comparing it to its historical volatility, Bridgewater Bancshares is 2.2 times less risky than Esquire Financial. It trades about 0.12 of its potential returns per unit of risk. Esquire Financial Holdings is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  2,300  in Esquire Financial Holdings on December 21, 2019 and sell it today you would earn a total of  176.00  from holding Esquire Financial Holdings or generate 7.65% return on investment over 30 days.

Pair Corralation between Bridgewater Bancshares and Esquire Financial

0.34
Time Period3 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy91.18%
ValuesDaily Returns

Diversification Opportunities for Bridgewater Bancshares and Esquire Financial

Bridgewater Bancshares Inc diversification synergy

Weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Bridgewater Bancshares Inc and Esquire Financial Holdings Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Esquire Financial and Bridgewater Bancshares is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bridgewater Bancshares are associated (or correlated) with Esquire Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Esquire Financial has no effect on the direction of Bridgewater Bancshares i.e. Bridgewater Bancshares and Esquire Financial go up and down completely randomly.
See also your portfolio center. Please also try Commodity Channel Index module to use commodity channel index to analyze current equity momentum.